The Sligo-Leitrim TD, Mr John Ellis, has agreed to dispose of some of his assets to meet the demands of creditors of the failed Stanlow Trading Co., the IFA president, Mr Tom Parlon, told a meeting of creditors last night.
He said Mr Ellis was prepared to put money "in a package" for the farmers and a meeting will take place next week between Mr Ellis and a delegation of creditors and IFA representatives.
Mr Parlon said the IFA was now insisting that accounts produced by Mr Ellis be verified by an independent auditor and added that Mr Ellis had agreed to this. Mr Ellis was arguing that he has large mortgages on his properties and that even with the sale of assets he would only have limited resources with which to pay farmers. Mr Parlon said: "He is saying he has liabilities as well as properties and the residue he is estimating when the liabilities are paid is well short of what is owed to creditors."
The IFA president said that at this stage they would continue to negotiate with Mr Ellis rather than trying to pursue a legal course of action. This was "the preferred route", he said, agreed at last night's meeting.
There was practically a full turnout at the meeting of some 80 farmers, who between them were owed about £300,000 when Stanlow Trading folded in 1986.
Mr Ellis and his two brothers, Caillian and Richard, were the three directors of the company, but it has already been established in the courts that they are not personally liable for the debts. The farmers were owed amounts ranging from £200 to £21,000.
In a campaign being co-ordinated by the IFA, the farmers are now hoping that Mr Ellis will pay up on the basis of a "moral responsibility". A delegation of shareholders was to be elected at last night's meeting to meet Mr Ellis.
Farmers from Mayo, Roscommon, Donegal and Sligo turned up in Boyle last night, saying they were only interested in getting their money repaid.
Mr Willie Armstrong from Ballyshannon in Co Donegal, who was owed £21,000, said he was forced to sell a farm when Stanlow Trading failed to pay him.
"It's no good to us John Ellis resigning. We just want our money and we have been waiting long enough," he said. Some farmers were optimistic that they would be repaid after the recent publicity but others were more sceptical.
There was a large media presence in Boyle for last night's meeting, and farmers posed for photographers showing the bounced cheques they had repeatedly tried to cash. An IFA spokesman said they were also looking into the finances of Mr Ellis's two brothers.